Sucheta Dalal :SBI Q1 net profit up 42% on higher interest revenues
Sucheta Dalal

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SBI Q1 net profit up 42% on higher interest, revenues  

July 30, 2009


State-run lender State Bank of India (SBI) reported a 42% higher first quarter net profit on a healthy growth in treasury, wholesale and retail banking operations as well as in revenues, especially the interest revenues.
For the quarter to end-June, SBI said its net profit rose to Rs23.3 billion from Rs16.4 billion while total revenues, including interest revenues, grew 29.8% to Rs210.4 billion.
During the quarter, interest revenues of the country's largest bank grew 26.6% to Rs174.7 billion from Rs138 billion same quarter previous fiscal.
The lender, however, saw a rise in its bad loans during the quarter with the amount of net non-performing assets (NPAs) jumping to Rs84.0 billion during the June quarter as compared to Rs63 billion a year-ago. In percentage terms, net NPA of the bank rose to 1.6% from 1.4% a year-ago period while gross NPAs rose to 2.8% from 2.4% in the same period last year. SBI made a total provisioning of Rs12.3 billion to cover its non-performing assets in the first quarter.
SBI's revenues from treasury operations in the quarter grew to Rs63.9 billion as compared to Rs43.3 billion in same period last year. Wholesale and retail banking divisions contributed Rs62.8 billion and Rs83.8 billion, respectively, the bank said.
Gross advances of the bank, as at end-June, stood at Rs5.5 trillion, up 22.8%, as compared to Rs4.5 trillion in the year-ago period, SBI said.
The state-run lender, which has 16.5% market share in advances as against a 15.7% last year, saw its home and auto loan portfolios growing by 24% and 29% respectively on a year-on-year basis.
Similarly, SME, agriculture and large corporate advances grew by 24%, 30% and 37% respectively, the bank said.
Total deposits of the bank, as at end-June, went up by 36% to Rs7.6 trillion from Rs5.6 trillion in last year.
Current, savings account deposits of SBI, on a year-on-year basis, grew by 22.7% and the proportion of CASA to total deposits presently stands at 38.45%, the bank said.
SBI's total balance sheet, as at end-June, stood at Rs9.8 trillion, up 31%, from Rs7.5 trillion in the year ago period.

SBI shares closed 4% higher at Rs1722.8 on the Bombay Stock Exchange, while the benchmark Sensex ended 1.4% up at 15,387 points. - Yogesh Sapkale [email protected]

-- Sucheta Dalal